Bevco Company has provided the following information from its accounting records for the current year:
$\begin{array}{lrlr}
\text { Cash } & \$ 55,000 & \text { Accounts receivable } & \$ 45,000 \
\text { Inventory } & 65,000 & \text { Land } & 75,000 \
\text { Accounts payable } & 50,000 & \text { Notes payable (due 2021) } & 150,000 \
\text { Retained earnings } & ? & \text { Capital stock } & 20,000
\end{array}$
-Read the information for Bevco Company.What are Bevco' current liabilities?
A)$50,000
B)$125,000
C)$200,000
D)$230,000

Question

Bevco Company has provided the following information from its accounting records for the current year:
 $\begin{array}{lrlr}
\text { Cash } & \$ 55,000 & \text { Accounts receivable } & \$ 45,000 \
\text { Inventory } & 65,000 & \text { Land } & 75,000 \
\text { Accounts payable } & 50,000 & \text { Notes payable (due 2021) } & 150,000 \
\text { Retained earnings } & ? & \text { Capital stock } & 20,000
\end{array}$
-Read the information for Bevco Company.What are Bevco' current liabilities?
A)$50,000
B)$125,000
C)$200,000
D)$230,000

Quizplus · Accepted Answer

Current liabilities include obligations the company expects to pay within one year. For Bevco, the current liabilities are Accounts payable ($50,000). Notes payable is not considered a current liability because it is due in 2021, which is beyond the current year.

Bevco Company Has Provided the Following Information from Its Accounting